ECB, BOE raise rates
ECB39;s Lagarde says inflation risks remain
Recession risks rise to 60, from 50 J.P. Morgan AM

NEW YORK, Dec 15 Reuters The U.S. dollar soared on Thursday, led by strong gains against the yen, sterling, and commodity currencies, as investors fretted about the risk of recession with the Federal Reserve likely to raise interest rates well into next year.

The greenback39;s allure was magnified, amid worsening risk appetite as stocks fell.

Like the Fed, the European Central Bank raised interest rates for the fourth time in a row, although by less than at its last two meetings, pledged further hikes and laid out plans to drain cash from the financial system as part of its fight against runaway inflation.

ECB President Christine Lagarde, in her press briefing, said upside inflation risks remain, which necessitates more tightening.

The Bank of England also raised its key interest rate by a further halfpercentage point on Thursday and indicated more hikes were likely. Investors though bet that the BoE might be getting close to the end of its increases in borrowing costs.

Both the Fed and ECB delivering more hawkish rate steers are compounding recession fears, said Joe Manimbo, senior market analyst at Convera in Washington.

The dollar39;s boost from the Fed stems from it not being done raising rates and Chair Jerome Powell setting a high bar for rate cuts.

The Fed projected at least an additional 75 bps of increases in borrowing costs by the end…